Final answer:
The newest iPhone is a normal good for the average consumer as its demand increases with rising income. Normal goods can be classified as necessities with an income elasticity less than one, or luxuries/superior goods with an income elasticity greater than one. The newest iPhone can be considered a luxury or superior good.
Step-by-step explanation:
For the average consumer, the newest iPhone is typically considered a normal good. This means that as income increases, the demand for this type of good generally goes up, reflecting a positive relationship between income and demand. In contrast, an inferior good is one where the quantity demanded falls as income rises, and rises when income falls.
Normal goods with an income elasticity of less than one are typically referred to as necessities, whereas those with an income elasticity greater than one are often called luxuries or superior goods.
The newest iPhone, given its status as a leading-edge technology product and a brand that signifies a certain level of luxury, can be considered a luxury or superior good due to its positive income elasticity that is likely greater than one.